According to the Keynesian View, the Proper Response to a Severe

Multiple Choice

According to the Keynesian view, the proper response to a severe recession would be

A) an increase in taxes in order to reduce the budget deficit.
B) an increase in government spending financed by borrowing.
C) a shift toward a restrictive monetary policy to reduce aggregate demand.
D) reliance on automatic stabilizers to direct the economy toward full employment.